Limited incentives for new investments this yearDavao City (23 June 2005) -- New investments enrolled at the Board of Investments will have limited incentives starting this year.
Board of Investments (BOI) head for Davao Engr. Gil Dureza said they have still to receive the guidelines on the giving of incentives for investments in 2005.
"We expect the guidelines to come in the next 15 days that will most likely limit the giving of incentives for export," he said.
He said unlike in 2004 where investors enjoy full incentive package, the government will limit the incentives starting this year.
He said the Department of Finance as member of the board would like to limit the tax incentives and other perks inorder to maintain the country;s financial balance.
"There were reactions from the business sector on the plan of limiting the incentives when it was presented during the public hearing last year," he said.
But the government stood by its decision of limiting the incentives and that only the past top ten dollar earner will given full incentives, he added.
Dureza, however, pointed out said that it will have no impact to investments in Region XI because almost all of the investments are agri-based.
He said the agri-based investments on food are among the top export dollar earners even as he said that it is the sector that falls in the priority list of the government.
Dureza said that most likely the VAT -Zero will be among the tax incentive that will be removed. "Medyo malaki ito kasi 10 percent ang value added tax that will be applied to sales.
Dureza said that President Gloria Macapagal Arroyo approved on April 26, 2005 thru Memorandum Order No. 169 the 2005 Investment Priorities Plan.
Listed in the preferred activities are agribusiness, healthcare and wellness products and services, information and communications technology, electronics, motor vehicle products, energy, infrastructure, tourism, shipbuilding/shipping, jewelry, and fashion garments.
Other export activities not identified in the preferred list shall be entitled to limited incentives as specified in the IPP 2005 other preferred activities (PIA/pdb)
Linkback:
https://tubagbohol.mikeligalig.com/index.php?topic=86573.0